Problem 1.
Problem 2.
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 3 feet $5 per foot $ 15 Direct labor 7 hours ? per hour ? During March, the company purchased direct materials at a cost of $45.240, all of which were used in the production of 2.400 units of product. In addition 4.900 direct labor-hours were worked on the product during the month. The cost of this tabor time was $39.200. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 3,088 u $ 3,200 U $ 750 W Required: 1. For direct materials a. Compute the actual cost per foot of materials for March b. Compute the price variance and the spending variance 2. For direct labor a. Compute the standard direct labor rate per hour b. Compute the standard hours allowed for the month's production cCompute the standard hours allowed per unit of product Req 1A Reg 1B Reg 2 For direct materials, compute the actual cost per foot of materials for March Actual cost per foot Req 1A Reg 1B Req 2 For direct materials, compute the price variance and the spending the effect of each variance by selecting "F" for favorable, "U" for ur Input all amounts as positive values.) Price variance Spending variance Req 1A Reg 1B Reg 2 2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer 2b. For direct labor, compute the standard hours allowed for the month's production. (Do 2c. For direct labor, compute the standard hours allowed per unit of product. (Round your 2a. Standard direct labor rate per hour 2b. Standard hours allowed for the month's production 2c. Standard hours allowed per unit of product Standard Cost 0.4 hours 2.84 $11.12 Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to get things under control." Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool: Standard Standard Price Quantity or Hours or Rate Direct materials 3.0 pounds $ 2.50 per pound $ 7.50 Direct labor $ 7.10 per hour Variable manufacturing overhead 0.3 hours $ 2.60 per hour 0.78 Total standard cost per unit Based on machine-hours. During June, the plant produced 8,000 pools and incurred the following costs: a. Purchased 29,000 pounds of materials at a cost of $2.95 per pound, b. Used 23,800 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) c Worked 3,800 direct labor-hours at a cost of $6.80 per hour. d. Incurred variable manufacturing overhead cost totaling $8,100 for the month. A total of 2,700 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Doud Required: 1. Compute the following variances for June o. Materials price and quantity variances. b. Labor rate and efficiency variances C. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Required 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overhead rate and efficiency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Show less 1a. Material price variance Material quantity variance 16. Labor rate variance Labor efficiency variance to. Variable overhead rate variance Variable overhead efficiency variance R1 Required 2 > 5 Required 1 Required 2 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e. zero variance). Input all amounts as positive values.) Net varianco
